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CORPORATE GOVERNANCE RELATED ENFORCEMENT ACTIONS

The SC as the regulator for the capital market is committed towards effectively discharging its enforcement functions over all regulatory matters under its purview. The general jurisdiction of the SC relates to, in the primary market, fundraising exercises and takeovers and mergers and in the secondary market, the regulation of offences such as market manipulation, insider trading, false and misleading disclosures as well as compliance with accounting standards as prescribed by the Malaysian Accounting Standards Board.

Data on enforcement action by the SC, specifically highlighting data on offences in these areas which have a bearing on corporate governance. This classification is determined by reference to the type of offence committed, the class of offenders involved and nature of the impact of the offence.

Information on enforcement activity by other key regulatory agencies involved in the regulation of corporate governance is available by contacting the relevant regulatory agencies directly -

  • The Companies Commission of Malaysia, which is the principal regulator for companies in Malaysia and is responsible for the administration of the Companies Act 1965.
  • Bank Negara Malaysia, which is, among others, the principal regulator for the regulation of financial institutions (banking institutions, merchant banks, finance companies, discount houses and money broking companies). In the context of listed financial institutions, Bank Negara Malaysia plays a role in the prudential regulation of the activities of such entities in addition to the regulation of public listed companies by the SC and the exchange. This includes the regulation of ownership, control and management of such financial institutions and restrictions on the conduct of business of such institutions.
  • The Bursa Malaysia, which is responsible for the front-line regulation of its members and of public listed companies.
  • The Royal Malaysian Police, which is, among others, responsible for the enforcement of the Penal Code.